What is the Penalty for Late Filing of GST Return

Penalty for Late Filing of GST Return : You might already be aware that every Person who has a GST Registration should and must file their GST Returns within the specified due date. The filing of GST Returns is mandatory irrespective of your total gross turnover, sales or profit. In other words, even if your business sales is Nil, still you may need to file your GST Returns or else face the penalty from the government. In our earlier article, we have already provided the dues dates for payment of GST and also for filing the GST Returns. In this editorial, we will clearly explain the Penalty for Late Filing of GST Return and also what are the other consequences you may need to face for not filing you GST Returns.

Penalty for Late Filing of GST Return

Monetary Penalty

Rs.100 Per Day

Maximum Penalty

Rs.5,000

Other Consquences

Registration Cancellation

Rs.100 Daily Penalty for Late Filing of GST Return

For every day of continuing default, the registered tax payer has to pay a penalty of Rs.100, on account of late filing or not filing the GST Returns.

However, the maximum penalty that can be collected from the tax payer under this provision for for Late Filing of GST Return has been limited to Rs.5,000

GST Registration can be Cancelled for Late Filing of GST Return

Dont be happy in the sense that the maximum penalty as mentioned above is just Rs.5,000 and you can continue to default late filing of GST Returns or not filing them at all.

If the Assessing Officer is of the opinion that the tax payer is defaulting continuously filing GST Returns, he may cancel the GST Registration and take back the certificate issued.

On cancellation of a GST registration, the taxpayer would be required to pay GST tax, penalty and fines as assessed by the GST officer immediately.

In addition, GST payment must be made equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher.

You Credit Score might get effected for Late Filing of GST Return

Under GST, all taxpayers will be provided with a compliance rating score based on the track-record of GST return filing, GST payment and other requirements. Once there is any default from your end on filing or GST Returns, your GST Compliance Rating Score might get effected.

You should note that, in coming days, Banks will start giving loans to businesses based on this credit score.

Conclusion : Penalty for Late Filing of GST Return

We hope that this article has given you detailed picture about Penalty for Late Filing of GST Return and also other important monetary and legal consequences. If you have any further questions on ‘Penalty for Late Filing of GST Return’, you can send your queries at mail@finapp.in.